Emini Futures Day Trading Strategy

E-mini is an electronically traded financial future on a commodity at a predetermined date and price. E-mini tips are a set of rules put forward by a group of expertise on trading to help those who are learning to trade. E-mini session has so many opportunities with lots of risks which can see you lose your capital if aren’t careful. To improve your trading here are some of the vital steps that can help you during trading.
The E-mini Futures markets is seductive in nature as a trader can find huge opportunities. But along with them comes different hazards. Navigating all through an E-mini session, without losing your capital seems to be a daunting task as it seems. The trading course that we are going to teach you comes from a long experience of a 12 year old trader. The strategies involved in the trading systems were highly developed to derive an optimum result. So we will now teach you about our best strategies on Emini Futures.

Welcome aboard our website and in order to delve into E-mini Strategy, our team of experienced professionals will guide you with strategies straight into your mail boxes.

As mentioned in the beginning, trading Emini Futures is treacherous in nature and is a bit harder than single stocks. Further study reveals a few handful strategies that works on E-mini trading. The E-mini S&P 500 represents one-fifth value of the normal S&P futures contract. Hence there is no doubt that Emini exhibits one of a kind price pattern with indigenous volatility. Also we know that the law of demand and supply which governs pricing remains same with trading that includes foreign exchange currencies, stocks and cryptocurrencies as well.

Want to learn about the practices of future market? Well, we can guide you on strategies that relates to Futures Trading. Now let’s go into a detailed analysis on Emini day trading strategies.

My the best Emini Futures Trading Strategy Monthly Breakout

My top strategy is weekly strategy where I am trying to keep trade several weeks. My performance is 66% in last 2 years for risk reward ratio 1 to 1.
Step 1: I make research about S&P 500 E-Mini with market analysis and analyst commentary. Using several websites, I want to see positive fundamental analysis.
Step 2: Using basic technical analysis I draw trend line on chart and looking for important levels.
Step 3: I am looking for strong resistance like this on 2944 price level. 1 whole month price couldn’t break 2944 price level. When price breaks this level I enter into trade.I made BUY entry at 2944 on September 4. I will try to keep trade at least 1 week. Currently I am still in buy level mode for this trade.

4) If I see huge fundamental news that is against my trade I will close trade earlier. My goal is to keep trade at least 1 week till 4 weeks. My target is 2-4 Daily ATR.

Top 5 E-mini Trading Strategies That We Need to know from Theory

Available at CME that is the Chicago Mercantile Exchange, the E-mini line-up products gives the traders an opportunity to choose from a plethora of products. This exchange offers a list of asset classes, which includes equities, energies, metals & ag commodities. As there are different viable alternatives available it makes it super easier to find E-mini strategies which can work well.

To make a strategy absolutely viable, the strategy should have the capability to provide the trader the edge. What you should know is that an edge is always a competitive benefit or advantage which ensures that the strategies will be mostly profitable in the long run. Most of the E-mini strategies that are talked about are having a measurable edge. These strategies mostly fall into five chief categories. Let’s see what these top five strategies that work are.

• Trend Trading
• Momentum
• Rotational
• Swing
• Breakout

Now let’s get to know about these strategies and how they effectively work.

1. Trend

Well, trend trading is one of the most effective emini strategy. One proved and tested strategy for trend trading is to sell or buy a Fibonacci retracement level in a concert with prevailing trends. Trend trading is popular since it improves the risk to rewards and can be freely applied among the versatile market. In a strong trend, it is ideal to enter the trades on a lower time frame.

For example, consider that the E-mini copper feature or QC have broken on to the time frames. In that case, buying pullback in the price that can offer a steady trade location will be a successful way to get in with the uptrend. Here’s how it can work:

Stop Loss: These orders are positioned under the fifty or seventy-eight per cent Fibonacci retracement level.Entry: Buying orders from thirty-eight per cent or sixty-two per cent Fibonacci retracement level.The Profit target: Given the adequate time for the position so as to gain value, aligning at 1:3 / 1:4 ratio of risk to reward is perfect for any trend following.

2. Trading momentum

Momentum trading is a popular technique wherein the traders buy & sell according to the strength of the prices that are prevailing recently. In the financial market, momentum is determined by factors like the rate of price changes or trading volume. The momentum traders believe that an asset price that is going or moving in a particular direction will definitely continue to move in that particular direction until this trend loses its strength.

Among the short-term traders, capitalizing on the basis of the momentum of price action is one of the most successful and favourite approaches. Before the profits get locked in high-frequency strategies or scalping often end up relying on spike in order to flow to drive price.

These particular strategies are mostly executed during periods of high volatility. For example consider that in April E-mini gold, a momentum trader anticipated a positive run following with a negative 8:30 am EST:

3. Rotational Trading

A compressed or rotational market usually exhibit uneven price action and lacks a particular direction. RT or Rotational trading is a medium-term technique which takes the advantages of a good documented market. Herein a long term price increase is often followed by a movement in the same direction.

A Rotational market could be a super challenging to trade efficiently as most market structure is broken down. It should be noted that implementing the E-mini strategies which works for the rotational markets will take a lot of patience and time.
But compressed markets could also be rewarding n case it is approached according to context of mean methodology. For example, consider it is a usual Monday for a June E-mini S and P 500 (ES). Now a mid-session range of forty ticks is already established from a high 2821.25 to a low 2811.25. Also note that no economic events will be scheduled for late sessions. Now here is a strategy which trades the action:

Entry: sell within the eight ticks of high (2921.25) or buy within eight ticks of low (2911.25). Profit target: eight to ten ticks towards the point of control of the trading range.Stop Loss: You can place two ticks below the low for buy or above the daily high for a sell.

4. Swing Trading strategies

Swing trading is a category of strategy that focuses on taking small gains in the short term and cut down losses quicker. Well, you can say it is an attempt to secure the market share by holding on an open position for many consecutive sessions. The only thing to worry about swing trading is that involves large margin requirements & potential liabilities. You need to have greater risk vs rewards ad longer time frames to apply the other strategies to swing trading.

Finally, note that though using multi-session strategies can be highly profitable but it also involves a huge amount of risk.

5. Breakouts

Breakout trading is a good way to maximize your potential gains. Often these trades are used with a large amount of risk versus reward ratio with anticipation that there will be a sudden movement of direction in the pricing.

This kind of trading is used by active investors to take the position within the early stage of the trend. Breakouts are stock price moving outside resistance level or defined support with an increased volume. Breakouts are often followed by periods of constriction & are often enhanced by the momentum trend followers or traders. Here is how breakout strategies look like:

How Do Trading Strategies For Emini S&P 500 works:

Unlike other futures contract Emini futures also works the same way, but S&P 500 works in its own separate contract specifications. The Emini has standardized specifications that allows for easy trade of which some are mentioned below:

One Emini contract is of $50 X the S&P 500 index value.The Emini moves in 0.25 point increments and each of those equals to $12.50 in one contract.Contracts are made available on April, July, October and January, which means, it expires quarterly. Emini S&P 500 Trading takes places between 6 pm on Sunday all the way to 5 pm on Friday. Although there is a halt from 4:15 to 4:30 pm daily.

We know the Emini is 1/5 of its standard futures contract, which implies, if S&P 500 trades at 2900 the overall market value of future contract will be $145,000 (2900 X $50). A large amount of money can be controlled than your initial deposits because while trading Emini you are on a margin.

Why To Trade In Emini Futures:

Getting a full display of the US stock markets is the purpose of trading Emini strategy. Emini futures serves benefits for swing traders also as they are more preferable for day trading. Some other reasons for trading Emini Strategy are as follows:

With Emini futures trading around the globe, it helps you to take an upper hand of its price swings because trading can be done 24 hours a day. Deep liquidity and tight bid helps in keeping costs down.You can trade global equity from a single marketplace.You can trade in and out cheaply because of the large volume of trade through Emini contract.

Strategy That Involves Emini Scalping, better or not?

Emini scalpingis as good as a long term investment as it eliminates the risks attached with holding positions. Scalping also helps in capitalization of price movements regularly. The key to a successful and long term stability when trading in Emini Strategy market is having an Emini Scalping Strategy. Use an indicator marked with small periods and use it for scalping. To be precise, use a 4 period setting in place of 14 period setting for Williams %R indicator. Scalping strategy does not work for anyone possessing a weak and an undisciplined mindset.

Some Trading Strategies of Emini Futures You Must Use.

A suitable type of market environment can only help a trade strategy working and give you the desired results. Also you might need the most accurate tools for successful use of the trading strategies of Emini Futures. You must get well acquainted with the different types of market changes as because of the trends in Emini market. There are a whole lot of future trading strategies that you might come across from several Emini Srategy traders but you will need right tools to put those strategies inline. Based on all the factors we came up with five Emini Strategies that might help you for a successful trading:

Event Driven StrategiesTime and Calendar StrategiesTrend Following StrategiesEmini Breakout and Emini Momentum Strategies.

Which Emini strategy Is The Best?

Whether you are a swing trader or a day trader, the easiest way to make more money is to follow a trend. When you go inside and outside scalping Emini Strategy Futures chances are that you might make a loss and that would eat up all your previous earnings. Therefore follow a trend that is moving and grab it for some time very close. With this mindset you will only earn more as E-mini contract inclines to close high on trending days. If you study Emini chart you will find a repeating pattern from time to time. Some experts says that the Emini Future has over 75% possibility of follow-through the subsequent day if it closes in top 10% within its range.

Emini Futures Trading Strategies Tips

This tips we can apply on emini any trading strategies that we want to work.

1.Trade The E-mini On A Schedule

Discipline consistency is considered a path to successful trading in E–mini. There are times of the day that are considered to be very hazardous for trading which can see you lose your capital due to unpredictability of the market.

Define your session and stick to it. Limit your trade to a consistent time to avoid the period that doesn’t worth your time. E-mini markets have a period where the graphs aren’t predictable hence avoiding such times can be worthwhile. There is the day that is worst for trading, that’s during the lunch hour break where most of the traders are out to take lunch and clear their mind. However, statistically, it has been proven that 10 a.m is the best hour to trade after initial orders have been cleared from open.

2. Don’t Be A Slave To E-mini Market.

Trading on an E-mini market requires one to have a consistent strategy and a well-defined goal. During the trade, try to at least have two winners and a positive result which can help you quit on your terms after a successful trade. If the target hasn’t been achieved try to be consistent until you achieve your ultimate goal. Making money is the primary goal and if it has been achieved then quitting is an option.

3. Use A Strategy With A Edge

Trading follows the law of demand and supply hence there are risks involved during trading. To ensure such risks from occurring and standout strong after trading you require a perfect strategy with an edge. Manually back-test can work perfectly whereby you test an eliminate failing scenarios as you discover your plan ultimately. With this at hand, you can perfectly come up with a working personal plan that can help you be successful in you trading through earning more money.

You ought not to follow what others do or say instead work on your path until you discover what works best for you as far as your goals are a concern. Some traders have short-term goals hence following their strategy comes with huge risks.

One of the trading veterans come up with a perfect strategy that has stood with the test of time, it is called Counter-Punch Chop Indicator. This strategy makes trading E-mini futures much easier and interesting, it is worth trying due to its efficiency. You can download the strategy here “Counter punch Chop Indicator” and more about it.

4. Trading E Mini Can Blow Your Account

E-mini trading futures might appear fancy and a walk in the park but truth be told it involves huge risk which if not taken into consideration may harm your account during trading. Risk management is vital to any trading hence you need to have a perfect working plan to navigate through to achieve your goals in a trade market. We all have a different perspective as far as risks are involved but math and probability have their law which we have to taken into consideration.

There is a chance to have long losing streaks indicated by probability, you must manage your risks to sustain string of losers in your account. Counter-punch Chop Indicator can perfectly work to prevent such risks in short and long term trading. You just have mastered its patterns and what it entails to reduce and prevent risks involving trading.

A 2% rule on two points work somehow perfectly it is the average risks you put on an E-mini trade. This rule helps a trader to avoid the risks of losing his/her account that might be blown up during trading. In case the risk occurs you will only have lost 2% of your account hence putting you in a better position to still forge ahead and learn from the risk that occurred as you prepare yourself to come back strongly. As risks occur and learning from then you can easily come up with your perfect plan to trade. We can all agree that risks must occur but achieving your goals is dependent on how you curb such risks hence it’s paramount to been keen with such risks.

5. A trading Program Can Work Better With Instruction

For trading to be there must be a powerful road map to execute every single step with care. For a trade to be successful, the ultimate goal must have been achieved, the risks involved must have been insured perfectly and money has been made. To achieve all these a trader must have perfect instructions to be followed in every step to curb risks and realize the ultimate goal.
The instructions at hand must be precise to realize the ultimate goal of trading at E-mini. Come up with instructions in a trading program to tackle risks involved with a perfect spell time of trading. As a trader familiarizes with each set of instruction at the end you master each step thereafter success will be inevitable. At first, it must seem not to be working for the beginners but as you continue to trade you will realize the trading gets better and better after every trade.

Conclusion: How to develop Emini Futures Trading Strategies ?

In a nutshell, we can say that the trading strategies of the Emini Future will open up your chances to take leverage of the best trading environment. The market is crawling with plenty of ideas for the strategies of day trading with Emini Futures, but only a few comes handy. It is recommended to construct your own plan regarding trading after discovering what is working better for you. A last piece of advice for you would be to understand the significance of risk management because if you don’t hold it for consideration, all your earnings might be gone in a while. It is unwise to gamble above 2% total of your balance into trading.

Keep your strategy as you like. Just always look to have planned entry, stop loss and target position. Plan is very important.

They say discipline consistency can result in success. Trading at E-mini can help you achieve the desired goal of a trade by following each of the above set of instructions. Most of the traders fail by not sticking to their work plan and the fact of them, not the following instruction, not having a trading plan in advance hence turning a positive trading session to a negative one. If you a trader can have a mentor that can help to be discipline and realize positive results. By following the above-stipulated set of rules belief you me at the end of the day you will be ahead of many traders.

Emini is a futures contract traded on the Chicago Mercantile Exchange electronically and is rated as per the S&P 500 index. Emini futures products are widely traded by institutional as well as retail traders. Irrespective of what you’re inclined to invest in be it energies, metals or equities, the eminis are a whole gamut of options.

Why are eminis so popular?

The attractive features such as optimal liquidly, small margins and volatility continuously are a few salient characteristics that make emini futures attractive.

Now the moot question is Is trading emini futures for a living reliable as a means of living?

The answer to this query is according to who you’re discussing the matter with. This is nothing unusual concerning market-related entities. It’s important to note that eminis may offer you the best opportunities provided you have the right attitude to do the business, a sound strategy, and experience-based guidance. All these factors go together to create opportunities for yourself, which you could leverage. Now the central question is how to move ahead?

Trading E-mini Futures for a Living is very unstable job !

This chapter is the most important chapter in this article. All traders need to know that the best traders on the end of the year have 20%-25% profit ! E-mini Futures have great liquidity, nice trends but you can not double your money every year. If you risk 1% till 2% per trade on the end of the year you will have from 15% till 30% profit if you are stable and good trader.

There are some unwritten rules. If you are daily trader and trade often and lot of, you will have bigger draw-downs, you will earn and lose money faster. If you positions trader your profit will grow slow but you will be more stable. In both case you can not risk a lot. E-Mini S&P is one of the most traded contract on the market and statistics shows that there are more bullish days than bearish because this instrument is correlated with development of top USA companies.

Orient your resources to your goals

Before you move to start an account with a brokerage firm and start trading, plan your available resources – you must orient them with your ulterior goal. In this context, you need to decide with respect to:

Money: how much you need for the trade, and wish to earn?
What are the amounts of time and capital at your disposal?

The first thing you need to analyze is if trading in emini features is good enough to bring a living for you. The answer should be meaningful. Be ruthlessly honest when deciding what have you to do and what you want the market to bring you. Are you expecting $200,000 a year? Or, $60 just to be able to pay your expenses?

Thus, it is significant to decide first what is acceptable to you. Then you need to make your resources for the trade. You need to exercise logic in distributing money and time to any trading enterprise. The resources that you spend must tantamount to your financial goals.

If you can spend only a couple hours a day and have $5,000 as risk capital, getting, $250,000 in a year is pretty hard.

You must take note of the point raised here. The point is the resources that you have should be able to realize the financial goal. If the plan fails, you must bring changes in the resource-goal.

Choosing the right product

The good thing in emini futures is that you get a range of trading strategies, options, and products including short-term intraday plants to longer-term investment plans and swing trading. By putting your money in emini futures, you will get an opportunity to perform their favorite methodology in the marketplace.

The most popular eminis targets trades are equity indices based ones. They are so popular with individual traders to take out a living thanks to the liquidity and volatility continuously.

You can easily determine the product that suits your financial temperament. If you’ve expertise in trading blue chips, then the emini DOW will be the best. Further, If you’ve expertise in forex trading, emini Euro FX is a great opportunity. In either of the cases, low margin requirements and the limited commission offered by brokers for emini opens a whole range of opportunities.

A good start for your trade

Gaining stability in the current state of the market is a gigantic achievement with of course no definiteness and financial safety. The eminis trading is ruthless and you must be extremely cautious.

How to get started Trading E-mini Futures for a Living ?

Orienting your resources and goals with a workable strategy to enter the market could be challenging. A great place to start learning trading emini futures for a living are excellent trading books. Start learning from the books, than try demo accounts and than start live trading.

All you need to know about futures spread trading

So, you are interested in futures spread trading. You want to know more about this trading option. This article will answer all your queries.

What is Futures Spread?

It is an arbitrage technique that enables traders to take two positions on products to make profits. In the futures spread trading, you will have to complete the unit trade using both the positions that include buy and sell.

What exactly it is?

It is a type of strategy designed to help traders to make profits by using derivatives on the principal investments. The key objective of this trading is to use both positions to make profits from the inconsistent or changing market conditions. Traders can make profits from the difference in the price change between the two positions. You can take futures spread if you find that you can make more profits from the price volatility.

As stated earlier, futures spread means taking two positions at a time. However, there will be different expiration dates so that you can make profits from the price change. The two positions will be traded at a time just like a unit and each position will be considered to be the leg of the trade.

There are different types of future spreads. The most common type is the calendar spreads. In this trade, you will have to take two positions according to the price speculation. The investors’ position will depend on the market condition.

Spread trading futures example

For example, if a trader feels that the price will go up, he can take the long term sell position and short term buy position. When the price will go down, the trader can take short term sell position and long term buy position. The key benefit is two positions. It ensures guaranteed profits.Of course trader need to do spread trading strategy calculation and calculate risk reward for both positions.

It is a bit riskier to take only a single leg option. You can make profits from this position only when you hold an underlying product and choose the option to sell that product at a much higher price any time in the future. When you will choose the buy position, then the risk of the price decline will be more. You cannot make profits from your investment in adverse conditions.

The term “futures spread training” is a staple among many professional traders. If you do any form of trading, however, most experts agree that it should be a part of everyone’s trading strategy. In this article, we will go over exactly why that is and help you get a good grasp of the latter as part of your trading arsenal.

To understand how futures spread can augment your trading strategy, it would be best to jump into its’ different forms. Only then can you glean valuable insights on how you can use it to augment your trading.

How to Trade Futures Spreads

It is important to understand each type of futures spread before trading. See list :

Inter-Commodity Futures spread

Simply put, Inter-Commodity Futures Spreads (ICFS) is a type of Futures contract that is divided among different, but related markets. One good example of this is the markets of Gold vs. Silver.

Spread trading futures example – Inter-Commodity Futures spread

Let us say that one trader believes that there will be a higher demand for Gold in the market for precious metals compared to Silver. The trader then proceeds to buy more Gold and sell Silver without having to worry about the fluctuations in price between the two. This is typical example for commodity futures spread trading.

In the example cited above, a trader using ICFS wants to see the value of Gold appreciate over the price of Silver. If the precious metals market sells off, the trader expects that Gold will retain its’ value better than Silver. Likewise, in a booming market, a trader expects Gold to increase farther than Silver.

Intra-Commodity Calendar Spread

In an Intra-Commodity Calendar Spread (ICCS), Futures contracts are allocated in just one market but spread between different months. For example, June Gold vs. December Gold.

ICCS trading intends to submit a long position for one futures contract while shorting the other. In the same example, a trader might be looking to play a short position for Gold in June and shift to a long position come December.

Bull Futures Spread – bull spread futures

A trader than engages in a Bull Futures Spread is said to be playing a long position on the same market for the next month and a short one for the protracted month. For example, let us say it’s April of 2019. You buy Gold in June intending to sell it come August 2019, June is closer to April compared to August.

It is essential to regard that the near months tend to fluctuate farther than faster compared to the back months hence the term “Bull Futures Spread”. Granted that Gold is in a bull market, the price is expected to increase more quickly during the closer month as opposed to the deferred one. In this case, a trader who is bullish on Gold would buy more during the nearest month and sell during the deferred month. Such a trader is counting on the possibility that the price of Gold will move quicker and faster during the closer month as opposed to the deferred one.

Of course, the price disparity between the closer and deferred months is not always accurate. That said, this is how these trades often turn out when on a bullish market with spreads turning to the trader’s favor.

Bear Futures Spread

A Bear Futures Spread is the polar opposite of the Bull Futures Spread. This means that a trader plays a short position (sells) during the near month and switches to a long position (buys) on the deferred month. The idea is for traders to profit from the spread as prices dwindle during a bear market.

Bitcoin Futures

Bitcoin futures entered the trading industry in December 2017. These products also offer ample opportunity to the traders to make money from the futures spread and price volatility. If you believe that the price will increase over time, then you can consider buying a contract for one month out and sell a contract two months out at a higher price to make profits. Traders will have the option to buy in the one month contract and sell in two months contracts. They can make benefits from the price change.

Futures Spread Trading Margins

Futures Spread Trading Margins is when traders reduce their margins for trades that make up a portion of a spread. Let us say that the margin for one contract of Gold is $4050. However, if you have both short and long positions for the said commodity during the same year, then the margin could be as low as $400.

Exchanges decrease the margins to account for lower volatility compared to the actual contracts. In effect, a Futures spread stalls the market for traders enabling them to react faster to significant events such as sudden interest rates, market crash, an outbreak of war, and the like. Whatever the case, Futures Spread Trading Margins enable traders to hedge their risks as the effects of external factors are spread evenly among their contracts.

Futures Spread Pricing

As the name implies, Futures spreads pricing revolve around the price difference between the two contracts. If one troy of Gold is equal to $1600 in May, and come August is trading at $1620, then the spread price is -$20. Conversely, if May was trading at $1620 and August is at $1600, then the spread price is $20.

Futures Spread Quotes

A trader engaging in what’s known as Futures Spread Quotes takes the price for the near month and deducts it with the price for the deferred month. Not surprisingly, if the near month is trading lower than the deferred month (i.e., June vs. August, for example), then the spread will have a negative value. Conversely, if the near month is trading higher than the deferred month, then the spread value will be a positive one.

Futures Spread Tick Values

Futures Spread Tick Values refer to the incremental increase or decrease in value for both spreads and individual contracts. Let us say that that spread for June Gold and August Gold is -$100 and the spread moves to -$110, then that is a $10 move.

$10 in Gold is $500 for all months in a $50,000 Gold contract because the tick value is both similar in spreads and individual markets.

Con-tango market

A contango market simply refers to the “regular” market wherein the value of a commodity tends to be higher during the deferred months compared to the near month.

Backwardation

A market that is said to be in backwardation is the polar opposite to that of a Contango market. Hence they are also aptly called an “inverse” market wherein markets are trading higher during the near month and lower towards the deferred month. The latter usually occurs during a bull market as demand rapidly overtakes the available supply.

Seasonal Futures Spreads

Many markets like wheat, cooking oil, and natural gas are subject to seasonal fluctuations in supply and demand. Some commodities experience high demand during the winter (i.e., natural gas) while others tend to peak during the summer (i.e., gasoline).

A seasoned trader is one that knows how to take advantage of any disparity in supply and demand. In the process, they take into account the past performance of spreads across several years to glean patterns that will help them weigh their risks and increase the probability of trading success.

Final Tip

Futures spread trading is completely risk-free in virtual cash with $100, 000. If you want to try your trading skill and make money from the futures spread, you can use the Free Stock Stimulator. You will have to submit the trade in a virtual environment before risking your hard-earned money. It is suggested to practice the trading strategies to perform better in the real market.

The Best Way to Learn Futures Trading is to read, read, read and practice trading on demo or small live account.

The futures market can make many investors rather confused given that they come with so many different terms and strategies at present. Despite the fact that it will be possible for you to make substantial profits in futures markets, it is imperative for you to comprehend exactly how these markets work and how it will be possible for you to generate revenues on a consistent basis. In this article, we have explained the various strategies that can be used in futures marketing.

The best way to learn futures trading are to learn from great books

The first thing is to read excellent book like “Schwager on Futures: Technical Analysis”. The first goal for any new trader is to learn and practice technical analysis. One of the mistakes new traders make is that they first read brochures, tiny eBooks, and internet sites before reading good trading books. Evan you trade forex or you trade futures – the first book you should read is : Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance) from John Murphy. Here you can read about futures but you can get big pictures about technical analysis. This is USA University book and all the famous traders from last 20 years learned from this book when they were in college. This is the best selling and the most popular book.

After books, start to watch youtube videos from various traders

In the next step, one of the best way to learn futures trading is to watch youtube videos and collect strategies and tips from futures traders. All that ideas write on paper. Do not believe to everyone just keep writing ideas.
A lot of webinars (1 hour, 2 hours, 3 hours webinars) are listed in youtube platform. Search them using youtube search option based on duration. You can find a lot of excellent videos, and learn interesting facts.

Do not skip steps in this process. It is important because if you do not read books, some “trading guru” can sell you simple basic strategy that has “90%” winning ratio and in reality strategy has 50% winning ratio. You can resolve very easy bad tips and great tips if you are well-read and if you know basic patterns and terms and rules from great trading books.

Time to testing

After you collect indicators, expert advisors, trading strategies, ideas from videos and books you are ready to open demo account and to test each strategy.
I like to make expert advisor EA and than to test each strategy. Learn, improve, adapt process is very important. After you test everything, you are ready for live account trading. Just trade with smallest number of lots in the beginning, risk less than 1% if you can, because you will need time to learn futures trading.

How Is It Possible For You To Be Successful and learn futures trading?

A futures market is a place where the speculators, as well as hedgers, are going to assemble with the purpose of predicting whether the cost of any commodity, specific market index or currency is going to rise or fall in the upcoming days.

Similar to any other market, there are risks associated with futures trading as well. However, it will be possible for you to generate both short-term as well as long-term profits because of the substantial amounts of volatility that are available in these markets.

1. Commodities

It is actually a physical product whose value can be figured out mainly by the forces of demand and supply. It will include energy, grains, and also valuable metals among other things as well. Commodities are going to trade in a centralized market where speculators and investors will predict whether the price will be rising or falling within a specific period of time.

In fact, a straddle is one particular strategy which can be used while trading commodities. It is possible to build a straddle simply by holding the identical number of calls (where you will be speculating that the price is going to increase) as well as puts (where you are going to speculate that prices are going to fall) with the identical expiration date as well as the strike price. Here, the fundamental idea is that you are thinking that the prices are going to stay volatile in the upcoming days, either moving down or up.

One more strategy that can be used will be to purchase a call option. Generally speaking, calls can be purchased by you once you are of the notion that the cost of the underlying asset is going to appreciate in the upcoming days.

On the other hand, you can also buy a put option in case you are of the notion that the cost of the underlying asset is going to fall in the forthcoming days.

2. Currencies

Similar to commodities, while trading currencies you are actually speculating that the price of any specific currency is going to fall or rise in the near future. Scalping is going to be one strategy which is typically used for trading currencies. In fact, the scalpers will try to make short-term profits from any incremental change in a currency’s value. Performing this again and again implies that your profit is going to go on adding up over time, thus providing you with significant revenues once you append all the small profits that you have generated together.

Generally speaking, it is possible for your time frame to be as short as only 1 minute or it might even last for a number of days. In fact, stringent discipline is required by a scalping strategy so as to make small and short-term profits on a consistent basis while avoiding any significant deficit.
My analysis and opinion is to avoid scalping strategies. Long term trades have better winning ratio and smaller draw-down and for new traders are better option.

Conclusion:

It can be somewhat difficult to get started with futures trading. However, you can learn futures trading by starting out paper trading which can be done by imitating trades on your own (or using a market simulator) until you think that you are all set to actually start trading. In a nutshell, it can be rightly asserted that trading different futures markets can be extremely lucrative in the long run.
The most important thing is the first step, to read great books and to learn basic patterns. After that is up to you how you will adapt, learn and improve each strategy.